Mornington Peninsula Shire, VIC

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Suburbs/localities in this Local Government Area: Hastings 3915, Hmas Cerberus 3920, Balnarring 3926, Balnarring Beach 3926, Main Ridge 3928, Mccrae 3938, Merricks 3916, Merricks Beach 3926, Merricks North 3926, Baxter 3911, Moorooduc 3933, Mornington 3931, Mount Eliza 3930, Mount Martha 3934, Pearcedale 3912, Point Leo 3916, Portsea 3944, Red Hill 3937, Red Hill South 3937, Rosebud 3939, Rye 3941, Safety Beach 3936, Shoreham 3916, Somers 3927, Somerville 3912, Sorrento 3943, St Andrews Beach 3941, Bittern 3918, Tootgarook 3941, Blairgowrie 3942, Tuerong 3915, Tyabb 3913, Boneo 3939, Capel Sound 3940, Cape Schanck 3939, Crib Point 3919, Arthurs Seat 3936, Dromana 3936, Fingal 3939, Flinders 3929


1 thought on “Mornington Peninsula Shire, VIC”

  1. Mornington house rental prices have been growing (YoY) year on year. However, on the same token, Mornington Council has also been experiencing capital growth which means that its overall yield is not substantial enough to provide customer with neutral gearing potential properties (assuming one’s deposit is not bigger than 20%).

    Notwithstanding the fact that neutral gearing if potential out of reach for customers interested in Mornington, the area is still of high investment quality. On of the reason for this are Mornington’s house rental prices which remain steadily growing and in high demand. This is specifically evident in case of its top 5 suburbs based on confidence (Fingal, VIC 3939; Red Hill South, VIC 3937; Baxter, VIC 3911; Balnarring Beach, VIC 3926; Somers, VIC 3927). With vacancies ranging from 3.33% to 2%, the areas in some instances highlight a balanced demand for properties which provides customers with the added security of having the investment property rented out with minimal lags and changeovers. This is also indicated by the fact that HtAG is forecasting an increase in rentals across the aforementioned areas which signals demand.

    Having your property rented out for the duration of the investment period with minor vacancy period provides you with an added security to focus on leveraging your capital growth and earning into additional properties. Reduced cost of holding the property (i.e. low vacancy rate) also permits for maintaining the same lifestyle as the customer is not required to dip more into his/her savings to keep the property and wait for the capital growth. Overall, given that the rents are increasing and that mots of the top 5 areas are positioned for medium to high capital growth, Mornington keeps its investment potential.

    If I had to pick an area from Mornington to invest in, it would be Baxter, VIC 3911. Why? Well, it has low vacancy rate, low entry point compared to other suburbs in Mornington (typical price at 664k) and it is forecasting between 12-18% growth (average per annum) meaning the projection error rate is very small (2.91%). I would also purchase a 3 bedroom house since this property type is in highest demand in Baxter.

    Happy investing…

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